South Carolina falls under Richmond.
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When Rep. Scott Tipton, R-Colo., suggested to Yellen that interest rates should remain low because “our economy stinks right now”, she responded by reiterating that the Fed is on the verge of raising them.
Wednesday, the US dollar rose 0.59 percent against the euro, 0.15 percent against the Swiss franc and 0.41 percent against the yen.
“After all, the Canadian central bank lowered interest rates yesterday, initiating yet another round in the devaluation race between currencies – which should benefit gold in its capacity as an alternative currency”. Last month, the FOMC indicated that the initial interest rate hike would be two-quarter point followed by a gradual pace of increases.
She also said annual price inflation, now deemed too low by the Fed, would need to move closer to its 2% target.
“If we wait longer, it certainly could mean that when we begin to raise rates we might have to do so more rapidly,” Yellen said.
Yellen highlighted a number of areas that had improved. Yellen references the growth of the labor market headed toward the goal of maximum employment.
However, Ms Yellen said overseas growth could improve quicker than people expect.
But she described business investment and export sales as weak.
The New Zealand dollar fell to its lowest level in over five years on Thursday after weaker-than-expected inflation data cemented expectations for a cut in interest rates as early as next week.
“The situation in Greece remains hard”.
“Greece developments have not had a bullish impact on gold but further glitches in the Greek debt relief process could lend modest support to prices”, HSBC said in a note.
The tacit nod of approval from the Fed chief is a good sign for Wall Street, as a rejection can be costly, though Yellen also made clear the US central bank will not hesitate to reject certain plans when it completes its assessment. These comments appeared to be anticipating the sharp questions that Yellen is likely to face from House lawmakers, some of whom have been increasingly critical of the Fed, about its decisions and operations, including its recent responsiveness to inquiries about a possible leak of information in 2012. She said the Fed holds press conferences after four of its eight meetings each year and has increased the frequency that it updates its economic forecasts.
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“Efforts to further increase transparency, no matter how well intentioned, must avoid unintended consequences that could undermine the Federal Reserve’s ability to make policy in the long-run best interest of American families and businesses”, Yellen said, according to a copy of her prepared remarks for the 10 a.m. hearing.
